TY - BOOK ID - 84541160 TI - The Use of Mortgage Covered Bonds AU - Avesani, Renzo. AU - Garcia Pascual, Antonio. AU - Ribakova, Elina. AU - International Monetary Fund. PY - 2007 VL - WP/07/20 SN - 1462315488 1452712794 1283517671 9786613830128 1451910371 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Mortgage bonds KW - First-mortgage bonds KW - Bonds KW - Mortgage-backed securities KW - Banks and Banking KW - Investments: Bonds KW - Money and Monetary Policy KW - Industries: Financial Services KW - General Financial Markets: General (includes Measurement and Data) KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Financing Policy KW - Financial Risk and Risk Management KW - Capital and Ownership Structure KW - Value of Firms KW - Goodwill KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Investment & securities KW - Finance KW - Financial services law & regulation KW - Monetary economics KW - Covered bonds KW - Credit risk KW - Credit KW - Financial institutions KW - Money KW - Financial regulation and supervision KW - Financial risk management KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541160 AB - The rapid mortgage credit growth experienced in recent years in mature and emerging countries has raised some stability concerns. Many European credit institutions in mature markets have reacted by increasing securitization, particularly via mortgage covered bonds. From the issuer's perspective, these instruments have become an attractive funding source and a tool for assetliability management; from the investor's perspective, covered bonds enjoy a favorable risk-return profile and a very liquid market. In this paper, we examine the two largest "jumbo" covered bond markets, Germany and Spain. We show how movements in covered bond prices can be used to analyze the credit developments of the underlying issuer and the quality of its mortgage portfolio. Our analysis also suggests that mortgage covered bonds could be of interest to other mature and emerging markets facing similar risks related to mortgage credit. ER -